‘Time running out’ for 800,000 to claim Pension Credit benefit before winter

Poverty campaigners have branded government plans to increase the number of pensioners claiming Pension Credit "confusing" and ineffective, warning that elderly people will be forced to cut back on their heating this winter to "dangerous" levels.

The warning follows Labour's controversial decision to scrap the winter fuel payment for millions of pensioners this year. Ministers insisted that most of the 10 million households expected to be hit by changes will see little impact to their personal finances because of increases to the state pension.

They also said it would work to increase the number of older people claiming pension credit.

But despite Keir Starmer's claim the government has not carried out an assessment looking at the impact of the proposed cut, figures quietly released by the Department for Work and Pensions have since revealed roughly 780,000 pensioners could be left worse off.

An estimated 880,000 are eligible to claim the pension credit benefit which would allow them to keep claiming winter fuel payments, but government figures show just a tenth of those are expected to have signed up to the scheme by the end of the year.

What is the Winter Fuel Payment and how is it changing?

The programme, which was created by the last Labour government in 1997, offers annual tax-free payments of up to £300.

Currently, 10.8 million pensioners in 7.6 million households in England and Wales claim the money every year, but in July, chancellor Rachel Reeves unveiled plans to end universal access to the cash for anyone of pension age.

Instead, it will now be limited just to recipients of Pension Credit and other means-tested benefits.

Most people will be enrolled for payments automatically if they meet the criteria, but you can find more information here.

What is the government doing to help people apply for Pension Credit?

In August, after the chancellor announced plans to means-test the Winter Fuel Payment, the Department for Work and Pensions (DWP) unveiled a "Pension Credit awareness drive" to help those who might lose cash, despite still being eligible to claim it.

At the time, about 1.4 million pensioners were already receiving Pension Credit, but a further 880,000 households were believed to be eligible for the support, but not claiming it.

The DWP has planned a "Week of Action" which it says will address "myths" which could be stopping people from applying and in the past five weeks claims to have seen applications for Pension Credit more than double, compared to the five week before.

A spokesman for the department said: “We urge anyone who thinks they may be entitled to Pension Credit to check their eligibility to make sure everyone eligible can access this support.

“And to ensure Pension Credit is accessible for all, applications can be made online at gov.uk, over the phone, or via a paper application form.

“Through the public awareness campaign that we have launched there has been a 115% increase in Pension Credit claims in the past five weeks compared to the five weeks before.”

According to government figures, 17,900 claims for Pension Credit were made in the five-week period between June 24 and July 28.

This rose to 38,500 for the following five-week period up to September 1.

Why do campaigners have concerns?

In the absence of official data, Simon Francis, coordinator at the End Fuel Poverty Coalition, said "only time will tell" whether the DWP's efforts will have an effect, but in the meantime, many charities remain "doubtful it will have a massive impact".

Instead, he remains most concerned about the "confusion and bureaucracy as a whole" and the knock-on effect delays to payments could have.

"People need this money at the beginning of winter," he said, "not getting the money to people in time is almost as bad as not giving it to them at all.

"A lot of people are already in energy debt and that's at record levels, but older people tend not to allow themselves to do that - they just cut back on usage. That's why it's a problem, they will cut back usage to dangerous levels and that has knock-on effects, all of which adds to health problems."

Caroline Abrahams, charity director at Age UK, said of the government's drive to increase awareness: “We do not believe it will not be enough to achieve the dramatic increase in Pension Credit take up that's needed, in the short time available for pensioners to secure their entitlement to Winter Fuel Payment before the weather chills.

"Time is now very short. The last date for claiming Pension Credit in time to secure your Winter Fuel Payment this winter is 21 December, just over four months away - not very long to tackle this long-standing and deep-seated problem of low take-up.

"Despite numerous campaigns to drive the take-up of Pension Credit over the years, only 63% claim it and the figure has never gone above 66% in the last decade.

"There is a £1.7 billion pot of money waiting for those older people who are entitled to it, and it could make a big difference to their quality of life."

How do I check if I'm eligible for Pension Credit?

Pension Credit is available to anyone over the state pension age who meets the set criteria.

The Guaranteed Credit part of the scheme tops up weekly income to at least £218.15 for single people and £332.95 for couples.

You are automatically eligible for Pension Credit if you and your partner, if applicable, have both reached the State Pension age and one of you received Housing Benefit.

If your income - which includes workplace pensions even if you do not claim it - exceeds the top-up limit, you may still be able to claim if you have a disability or care for someone who does.

Applications for Pension Credit can be made four months before you reach the State Pension age.

You can find out more about the eligibility criteria and begin the sign-up process here.